United Overseas Bank (UOB) announced on 6 Jan 2010 that it has sold its life insurance unit, UOB Life, to British Insurer, Prudential, for $428 million. UOB will instead concentrate on its core banking business. UOB will record a one-time gain of $85 million in FY2010. However, upon completion, UOB, UOB Buana and UOB Thai will enter into a bancassurance agreement to distribute life, accident and health insurance products of the Prudential Group for at least 12 years.
The exising 70,000 UOB Life policies held by 50,000 policyholders will hence be handed over to Prudential’s management.